espite claims it was injecting billions of extra dollars into the health system under new reforms the previous government's share of hospital funding fell from 39.6 per cent to 38.2 per cent.Source: Supplied

THE Federal Government's share of public hospital funding has fallen to its lowest level in a decade as hospital waiting lists fail to improve.

Despite claims it was injecting billions of extra dollars into the health system under new reforms the previous government's share of hospital funding fell from 39.6 per cent to 38.2 per cent.

Although the amount it spends on hospitals is increasing, late last year the Gillard Government imposed a retrospective $403 million cut to funding.

And new hospital funding cuts are already slated for future years after the previous government claimed the population was not growing as fast as forecast.

The Australian Institute of Health and Welfare reports the annual growth rate for federal hospital funding was just 1.6 per cent in 2011-12 compared to a growth rate of eight per cent by the states.

"This resulted in the Australian Government share of funding falling to its lowest level since 2001-02," the AIHW says.

The Commonwealth's falling share of hospital funding could be one reason elective surgery waiting times remain stuck at 36 days.

It is also likely to be a factor in the failure of public hospitals to meet emergency department targets set by the federal government.

The AIHW figures shows total health spending in 2011-12 was $140.2 billion and healthcare is now eating up 9.5 per cent of the nation's gross domestic product, up from 8.4 per cent in 2001-02.

As the population ages more of our tax revenue is going on healthcare.

In 2011-12 more than one in every $4 raised in taxes by all governments was spent on healthcare.

And individuals spent more than $24 billion out of their own pockets on health goods and services.

On average these out of pocket expenses for medical visits, medicines, dental care and hospital services cost Australians $1,101 a year.

Consumers Health Forum chief Carol Bennett says she does not think the figures represent the true out of pocket costs faced by Australians.

News Corp reported last year that some breast cancer patients are facing out of pocket expenses of $30,000.

Earlier this month a Griffith University study found men with prostate cancer faced out of pocket expenses of up to $23,000 because Medicare and health funds don't cover the full cost of their treatment.

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